2-9-2023 (MUMBAI) Naresh Goyal, the founder of Jet Airways, found himself in the clutches of India’s Enforcement Directorate (ED) as he was arrested in connection with an alleged bank fraud case amounting to approximately $65.06 million, with Canara Bank at its epicenter.
The ED, tasked with upholding economic laws and combating financial crimes in India, took Goyal into custody on Friday night after subjecting him to extensive questioning at their Mumbai office.
As per reports from local media outlets, the 74-year-old Goyal is expected to make an appearance before a specialized Prevention of Money Laundering Act court in Mumbai on Saturday.
Canara Bank filed a formal complaint against the airline, Naresh Goyal, his spouse, and a former director of the airline. The complaint alleges that Jet Airways had been granted a credit limit facility, but subsequently engaged in fraudulent activities, leading to a financial loss to the bank amounting to $65.06 million.
Bolstered by this complaint, India’s primary investigative body, the Central Bureau of Investigation (CBI), initiated legal proceedings in May. Following this, the Enforcement Directorate conducted a series of raids at various locations in Delhi and Mumbai in July as part of their ongoing investigation.
Jet Airways faced dire financial straits in 2019, resulting in the cessation of its operations and the unfortunate termination of thousands of employees. The airline embarked on an ambitious path to rejuvenation under new ownership with the intention of resuming operations in 2022. Regrettably, the plans for resurrecting the airline from bankruptcy encountered insurmountable obstacles due to disagreements with creditors.
Naresh Goyal’s arrest marks a significant development in this intricate financial scandal, raising important questions about the future of Jet Airways and the broader ramifications for India’s financial regulatory landscape.
